1. Client negotiates PPPoE using PADo, PADi and PADr with the server, both client and server move into PPP-->LCP phase
2. Client/Server negotiate authentication, other parameters
3. Server asks the client for a username/password (using pap, as pap is configured before chap)
4. Client sends out a username/password configured in it's dialer
5. Server authenticates this username/password against its global username/password list (alternatively a AAA/Radius server)
6. Client and Server both move on to IPCP phase
7. Client sends an ip address of 0.0.0.0 (asking for an ip address from the Server)
8. Server hands out an IP address from its pool (in this case pppoepool)
9. Client/Server finish IPCP phase and the link comes up